Bond Traders Boost Bearish Bets as US 30-Year Yields Eclipse 5%

A bearish tone is taking hold in the Treasury market amid worries over the risk of tariff-fueled inflation and increased government spending in some of the world’s biggest economies.

In JPMorgan Chase & Co.’s latest Treasury client survey, investors’ net long positioning shrank to the smallest in six weeks. That coincides with selling pressure in US government debt, which picked up on Tuesday after June consumer-price data failed to assuage concerns over the impact of trade levies. In response, investors trimmed bets the Federal Reserve will cut interest rates as soon as September.